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Termination of Employment in Greece

Updated: Nov 7, 2023

Sometimes, the employer or the employee is not satisfied with their work. In this case, a termination can occur. Below, employment and termination in Greece will be explained.

Kinds of employment

First of all, the type of employment in Greece is important to know. The most frequent type is full-time employment with an indefinite contract. In contrast, part-time contracts are less frequent in Greece. However, there has been an increase in frequency. Thirdly, fixed-term employment is for a defined duration or period.

Termination of employment

Termination of a fixed-term contract

For this termination, the employer has to give ‘compelling reasons’. Examples are professional incompetence, absence, or insufficient performance. However, the employee has to be notified in advance. In case of compelling reasons, compensation payment is not obligatory. But, the courts investigate the legitimacy of these claims. In case of refusal, the termination announcement is not correct. Also, all compensation must be paid.

Termination of an indefinite employment contract

In this instance, termination is only acceptable based on valid arguments. So it is stated by Article 24 of the updated version of the European Social Charter.

· Regular notice of termination:

For this, a warning of termination is given. Also, the person being dismissed is supposed to receive a written announcement. This notice ought to be signed by the director or a lawfully authorized person. It should be given between 1 and 4 months prior. In this case, at the end of the contract, all work relationships come to an end.

· Irregular notice of termination: The lay-off period begins the day of delivery of the notification of termination. Otherwise, the date referred to in the notice sets off the lay-off period.

1. Regardless, the employer should submit a digital notice that the contract has been ended through the ERGANI information system. It should be done whether the employment is of fixed or vague duration. It should also be done regardless if it is regular or irregularly finished.

2. The employer has to compensate the dismissed employee. This entails the duration of the contract and the salary or wage of the last month. An exception is if the dismissal is lawfully presented to be ‘compelling’.

3. Collective redundancies:

These dismissals are conducted by businesses. Rreasons are not related to individuals. Instead, the reasons are linked to financial or technical reasons. According to legislation for collective dismissals, the following restricts for each calendar month should be exceeded:

1. 6 employees for companies with 20 to 150 employees

2. A percentage of 5% of manpower and up to 30 employees for an enterprise with more than 150 people.

It is important to note that dismissals cannot contain redundancies for certain reasons related to individuals. For example, absenteeism, inadequate performance, or voluntary dismissals.

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Termination of an employment contract by the employee

Employees can submit a notice of termination contract either in written form or orally. To be more specific, they have to notify their employers 3 months before the end at the latest. In that case, employers are not obligated to pay compensation. Also, the employee is not authorized to take the unemployment allowance from the OAED (Manpower Employment Organization). This is because of a lack of prior notification of termination of employment from the employer. That is essential for the remuneration of unemployment perquisites.

Types of pension

· Full old-age pension: This is paid when the employee has completed 4500 working days and is at the age of 67. A reduced pension can be given when the employee is 62 and has 4500 working days of insurance. Insured employees are authorized to contributory and national pension.

· Pension because of the death of an insured person: The surviving husband and his/her children are authorized to take to this pension.

· Invalidity pension: In that case, the Disability Certification Centre (KEPA) has to evaluate the insured employees. They should have 50% or more percentage of the disability to take the pension. The employee ought to also have been insured with IKA-ETAM for the minimum essential time, relying on age.

· Special dismissal protection: According to Greek legislation, a special legal protection against redundancy is primarily provided for the next categories of employees:

1. Disabled employees;

2. Employees, who have been called to military service;

3. Pregnant women;

4. Employees on vacation period.

Reference List

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